Philip Morris Shares Slide 1.27 as Defiance ETFs Launch 2X Leveraged Product Ranking 56th in Trading Volume

On September 4, 2025, Philip Morris International (PM) closed with a 1.27% decline, trading a volume of $1.27 billion, ranking 56th in market activity for the day. The stock faces renewed scrutiny as Defiance ETFs launched the Defiance Daily Target 2X Long PM ETF (ticker: ZYN), a leveraged fund designed to deliver 200% daily exposure to PM’s performance. The product, using swaps and options, targets sophisticated investors seeking amplified returns, though it carries risks of significant losses over multi-day periods.

PMI reaffirmed its 2025 earnings guidance at the Barclays conference, projecting adjusted diluted EPS growth of 13–15%. Strong volume recovery in Turkey and Egypt, alongside 32% growth in ZYN sales in the U.S., underpin the outlook. However, challenges persist in markets like Indonesia and Europe, where illicit cigarette trade and supply chain pressures, such as the forced tobacco purchases in Pakistan, could weigh on margins.

In South Africa, PMI pushed for regulatory reforms to prioritize harm reduction, advocating for a science-based framework to promote smoke-free alternatives. Meanwhile, the company’s U.S. arm released a white paper highlighting gaps in healthcare providers’ understanding of nicotine alternatives, urging the FDA to enhance education on reduced-risk products. These efforts align with PMI’s broader strategy to transition adult smokers from combustibles to alternatives like IQOS and ZYN.

Recent operational highlights include Sampoerna’s advancements in smoke-free innovation in Indonesia, including regional exports of IQOS and VEEV. Despite these strides, PMI faces headwinds from regulatory scrutiny and evolving consumer preferences. The launch of ZYN and ongoing product momentum will be critical in sustaining long-term growth amid competitive and structural challenges.